Starbucks to Source its Food Products for its Upcoming Shanghai “Roaster and Reserve Tasting Room” from Europe’s Princi

As part of a program to upgrade its food sales, Starbucks Corporation will become a licensee and investor in the boutique bakery and cafe Princi. The bakery will offer food in all new Starbucks roastery locations, including Shanghai and New York…Full Article: ECNS.cn July 2016

Key Point

Princi food products will be used to stock Starbucks’ new international roaster and reserve tasting room in Shanghai (opening in 2017).

ChinaAg Comments

In June 2016, Starbucks announced it would raise the price of its coffee drinks by 8% to 10% in China. The last time Starbucks raised the price of its coffee drinks in China was in 2012.

In May 2016, Starbucks announced it would open its first international roaster and reserve tasting room in Shanghai in 2017.

As of early 2016, Starbucks had more than 2,100 stores located across 100 cities, making China its largest overseas market.

In January 2016, Starbucks announced plans to open 1,400 new stores by 2019.

In 2015, Starbucks had a 73.3% of China’s high-end coffee chain market, followed by McDonald’s McCafe at 9.3%, Whitebread’s Costa Coffee (British), and China Resources Enterprise’s Pacific Coffee at 3.9%.

In December 2015, Starbucks began marketing their goods on Alibaba’s Tmall e-commerce site.

As of 2015, Starbucks had 1,700 coffee shops in China.

In September 2015, Starbucks opened two stores in Xining City, Qinghai Province, northwest China.

In March 2015, Tianjin’s Tingyi Group signed a deal with Seattle’s Starbucks to produce and distribute the coffee company’s ready-to-drink products in mainland China.

In November 2012, Starbucks raised the retail price on five espresso-based drinks (e.g. latte, macchiato, mocha, and cappuccino) by CNY 2 (US$0.32) in 12 cities across China including Tianjin, Chongqing and Dalian.

In January 2012, Starbucks raised the retail price for regular coffee by CNY 1 to 2 (US$0.16 to US$0.32). Starbucks also increased the price of espresso and hot chocolate by CNY 1 to 3.